PART 2: CASH FLOW STATEMENT PREPARATION

The cash flow statement is an important, and often overlooked, financial statement. However, it can provide important data for use by internal organization management. By analyzing the balance sheet and income statement, the accountant can then prepare the statement and share the results with both internal and external users.Use the Assessment 3, Part 2 Template to determine the appropriate activity (operating, investing, or financing) for each transaction listed for Skylar Enterprises, Inc., and prepare the cash flow statement using the indirect method in good form for reporting. Data is provided in the Information worksheet in the template; complete the statement of cash flow in the Cash Flow Statement worksheet. Use the suggested materials in the Resources if you need more information on preparing cash flow statements.

I18 . r A A B c D E G 2_ Instructions: Helm Eiai|=|8|||~|mim *1\" 22 '1'! Skylar Enterprises, Inc. Comparative Balance Sheets 1213172012 Assets Cash Accounts receivable Inventory Land Equipment Accum. Depreciation - Equipment Total Liabilities and Equities Accounts payable Bonds payable Common stock Retained earnings Total Additional Information: 1. Net income for 2012 was $103,000. 2. Cash dividends of $45,000 were paid. 3. Bonds payable amounting to $55,000 were redeemed. $73,000 $85,000 $170,000 $75,000 $260,000 -$66,000 $597,000 $39,000 $150,000 $216,000 $192,000 $597,000 4. Common stock was issued for $42,000 cash. 5. No equipment was sold during 2012. 6. Land was sold at cost during 2012. 17172012 $22,000 $76,000 $189,000 $100,000 $200,000 -$32,000 $555,000 $47,000 $200,000 $174,000 $134,000 $555,000 Difference $51,000 $9,000 $19,000 $25,000 $60,000 $34,000 $8,000 $50,000 $42,000 $58,000 9 vi r IA|B|C|D,E|FG| Skylar Enterprises, Inc. Statement of Cash Flows - Indirect Method For the Year Ended December 31, 2012 Cash Flow from Operating Activities: Cash Flow from Investing Activities: Cash Flow from Financing Activities: | Information Cash Flow Statement (-9